Denmark Tax Agency Clarifies VAT Treatment of Board Fees

The Danish Customs and Tax Administration May 28 posted Tax Council Binding Answer No. SKM2025.296.SR, clarifying VAT obligations on fees paid to board members. The taxpayer, a lawyer, sat on the board of directors of a foreign foundation. The taxpayer invoiced the foundation for board membership fees that included VAT, and sought clarification regarding whether the fee payments were exempt from VAT. Upon review, the Tax Council found that: 1) the taxpayer assumed no individual responsibility or risk since they only exercised powers granted to the entire board; 2) the foundation carried the economic risk arising from the board’s decisions ...